The Ministry of Commerce & Industry periodically reviews the duty drawback rates by mandating the Duty Drawback Committee and revises the rates so that all the central taxes are refunded so as to avoid export of taxes and have a level playing field in the global market. Consequent to the significant changes made in the tax structure after the implementation of GST, the textiles and clothing has been demanding the government to announce enhanced the duty drawback rates. The Government has recently announced the duty drawback rates applicable for the year 2018-19. In the announcement, there is a marginal increase for several items of textiles and clothing products in the duty drawback rates.
Issuing a statement on the same, P.Nataraj, Chairman, The Southern India Mills Association thanked the Prime Minister,Union Commerce & Industry Minister and Union Textile Minister for considering the pleas made by the industry and revising the duty drawback rates. He has stated that the increase would help the exporters to improve their competitiveness especially in the PTA countries. There is a marginal decrease in the duty drawback rates of apparel items.